Kabbage Business Checking: 2022 Review

This simple, free online business checking account is a great option for earning a competitive APY.
Oct 4, 2021

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Our Take

5.0

NerdWallet rating 

The bottom line:

Kabbage Checking™ has no monthly fees or transaction limits and earns a competitive interest rate. This account is a worthwhile option for any small-business owner who wants a simple and affordable way to manage their finances online — especially if they’d like to take advantage of the other services Kabbage offers. Launched in July 2020, Kabbage Checking™ is still a new product, however, and competitors can offer more established feature suites that have already been tested in the market.

Kabbage Checking™
Kabbage Checking™

Checking

Deposits are FDIC Insured

Monthly fee
$0
APY
1.10%
With $0 min. balance for APY

Pros & Cons

Pros

  • No monthly fees, minimum balance requirement or minimum opening deposit.
  • No transaction limits.
  • Earn 1.10% APY on account balances up to $100,000. No interest is earned on aggregate balances of over $100,000. Terms apply.
  • Fee-free access to 19,000 Allpoint ATMs; ability to deposit cash at participating retailers through the Green Dot network.
  • Reserves feature can help you organize your income or budget for specific goals.
  • Integrates directly with Kabbage Funding™, Kabbage Insights and Kabbage Payments.

Cons

  • Fee of up to $4.95 per cash deposit.
  • No joint accounts.
  • No integrations with third-party tools (e.g. accounting software, invoicing software).
  • Mobile check deposit funds have slower-than-average clearance time.

How does Kabbage compare?

Bluevine Business Checking

Bluevine Business Checking

Deposits are FDIC Insured

Relay

Relay

Deposits are FDIC Insured

NerdWallet rating 

5.0

/5
NerdWallet rating 

5.0

/5

Monthly fee

$0

Monthly fee

$0

APY

1.50%

With $0 min. balance for APY

APY

N/A

Bonus

N/A

Bonus

N/A

Full Review

Already well-known as a small-business lender, Kabbage (now part of American Express) expanded its product suite by launching Kabbage Checking™ in July 2020.

Kabbage Checking™ is an online-based, free business checking account with no minimum opening deposit and no minimum balance requirements. The account offers a competitive interest rate, limited fees and a simple application process, making it a compelling choice for small-business owners looking to manage their finances online.

Additionally, you can manage your checking account through the same interface as Kabbage’s other services — Kabbage Funding™, Kabbage Insights and Kabbage Payments — making it a great option for business owners who anticipate having future capital or payment needs.

Kabbage business checking is best for small-business owners who:

  • Want a free business checking account.

  • Prefer to manage most of their finances online.

  • Want to earn interest on their checking account funds.

  • Can take advantage of Kabbage business loans and/or the Kabbage payments platform.

Kabbage business checking at a glance

Monthly fee:

$0

Minimum opening deposit requirement:

$0

APY:

1.10% APY on balances up to $100,000. No interest is earned on aggregate balances of over $100,000. Terms apply.

Transactions:

Unlimited electronic transactions

Bonus:

None

How Kabbage business checking works

Account options: Because Kabbage is not a bank, its banking services are provided by Green Dot Bank and accounts are insured up to $250,000 by the Federal Deposit Insurance Corp. Kabbage only offers one business checking product — Kabbage Checking™.

Account eligibility: You must have a U.S.-based business with an employer identification number, or federal tax ID, in order to be eligible for a Kabbage business checking account. The business owner applying for the account also must be able to provide a Social Security number.

How to apply: Visit the Kabbage website to create an online account. Then complete and submit your application.

  • Required information: Basic details about you and your business, including your industry, address, Social Security number and federal tax ID number are required. You’ll also need to provide personal information on anyone with 25% or more ownership in the business.

  • Required documentation: Once you’ve submitted your initial application — or even after you’ve opened your account — Kabbage may ask to see a form of personal identification, as well as business formation documentation (varies based on entity type) to complete additional verification.

Next steps: After your account has been approved, you can add funds by bank transfer or direct deposit. You’ll also receive a virtual business debit card that you can use online until you receive your physical card in the mail.

Once you receive and activate your physical debit card, you’ll be able to deposit cash into your Kabbage business checking account using any of the participating retailers in the Green Dot network (fees apply).

In addition, you’ll be able to manage your account through Kabbage’s online dashboard, or by downloading the mobile app, available for iOS and Android devices.

It’s important to note that Kabbage requires you to enroll in the mobile check deposit feature. To be eligible for this feature, you’ll need to have first made an initial deposit into your account by ACH transfer. You’ll also be subject to additional identity verification procedures.

Where Kabbage business checking stands out

No fees: The Kabbage business checking account has no monthly fees, no fees for ACH transfers, online bill pay, direct deposit, or mobile check deposit, no minimum opening deposit and no minimum balance requirement. This account also has no fees for incoming domestic wires and no fees for ordering a replacement for your business debit card.

In addition, Kabbage Checking™ gives you access to 19,000 fee-free ATMs across the U.S. for cash withdrawals — plus, Kabbage itself doesn’t charge fees for out-of-network ATM withdrawals, although you may face fees from the ATM owner.

Note: Kabbage does charge fees for teller cash withdrawals ($3 per withdrawal), foreign transactions (3% of the total transaction amount) and payment orders/outgoing domestic wire transfers ($25 per transaction).

High-yield APY: Kabbage business checking earns 1.10% APY on balances up to $100,000. No interest is earned on aggregate balances of over $100,000. Terms apply. This interest rate makes Kabbage particularly competitive against similar online business checking accounts like Bluevine and LendingClub Bank.

Reserves: You can use your Kabbage Checking™ account to create up to five unique Reserves to organize your business income and budget your spending. These Reserves can be used to set aside money for emergency funds, individual projects or other savings goals.

All of the money in your Reserves will also earn interest, and you’ll be able to manage these subaccounts using your online dashboard or through the Kabbage mobile app. It’s important to note, however, that in order to use any money that you store in a Reserves account, you’ll have to transfer the funds back to your primary account.

Integration with other Kabbage products: If you want the simplicity of purchasing financial services from one provider, Kabbage allows you to connect all of its different business products and manage them within the same online dashboard. You can connect your business checking account to Kabbage Insights, for example, to analyze your financial data and performance. Kabbage Insights also allows you to view cash-flow patterns, create balance forecasts and customize account alerts.

In addition, you can connect Kabbage Checking™ to Kabbage Payments, which allows you to send invoices, generate custom pay links and accept credit card payments online. Finally, you can apply for Kabbage Funding™ and — if you’re approved for a business line of credit — you can manage your account and make repayments through your Kabbage dashboard.

Where Kabbage business checking falls short

Cash deposit fees: You can deposit cash into your Kabbage business checking account by visiting a participating retailer within the Green Dot network — however, these retailers charge up to $4.95 per deposit.

Some online business checking competitors, like NBKC and LendingClub Bank, allow you to make unlimited cash deposits per month, without charging any fees.

No third-party integrations: Kabbage doesn’t currently offer integrations with third-party tools, such as accounting software, invoicing software or payment platforms. Novo, which also offers a free, online-based business checking account, for example, provides direct account integration with tools including QuickBooks, Xero, Stripe, Shopify and Slack.

Time on the market: Kabbage has been a well-known name in the small-business lending space for years, but it’s just getting started in business banking. Although the company is backed by American Express, Kabbage Checking™ is a new product on the market — which means there may be some bugs to fix and improvements to make as it rolls out.

» Still looking for more options? Check out our list of the best business checking accounts.

To view the fees and limits of Kabbage Checking™, see this page.

Methodology

NerdWallet's business checking reviews look at multiple factors, including monthly fee, APY, ATM access, transaction limits, cash deposit allowance, customer service, additional features and incidental fees, such as overdraft, NSF and stop payment charges.